Project Materials

THE ROLE OF ECONOMIC AND FINANCIAL CRIMES COMMISSION IN THE MANAGEMENT, CONTROL AND ERADICATION OF CORRUPTION IN NIGERIA.

ABSTRACT

Several years of military misrule and mismanagement have undermined Nigeria’s economic management systems and institutions. There was no transparency or accountability in the government (public and private sectors), and Nigeria became known for its widespread corruption. The outcome was the government’s inability to provide services to the Nigerian people. Most private enterprises in both the oil and non-oil sectors have consistently evaded taxes and colluded with officials to avoid customs fees and tax payments. Furthermore, widespread economic and financial crimes such as advance fee fraud (419), money laundering, cybercrime, banking fraud, and endemic corruption have had serious negative implications for Nigeria, including decreased direct foreign investment in the country. As a result, the Economic and Financial Crimes Commission (EFCC) was established to prevent, investigate, and prosecute corrupt practices and economic and financial crimes in both the public and private sectors.

Chapter one

INTRODUCTION

1.1 Background of the Study

Fraudulent activities, economic mismanagement, corruption, a lack of accountability, and transparency have plagued the economy. Fraud and criminality remained elusive, resulting in inefficiency across the system, particularly in the public sector.

This threat prompted the foundation of the EFCC in 2002 by an Act of the National Assembly, which was later revised in 2004. It sprang from the Federal Government’s aim to eradicate corruption and clean up the Nigerian economy by implementing all economic and financial crime laws.

The Act directs the EFCC to combat financial and economic crimes, and the Commission is authorised to prevent, investigate, prosecute, and penalise such offences.

Furthermore, the EFCC is charged with and is investigating incidents of abuse of office, diversion of public funds through fraudulent contract awards, tax fraud, illegal bunkering, terrorism financing, capital market fraud, cyber crime, banking fraud, and so on.

With a mission to curb the menace of corruption that constitutes a clog in the wheel of progress; protect national and foreign investments in the country; instill the spirit of hard work in the citizenry and discourage the crave for ill-gotten wealth;

identify such ill-gotten wealth and confiscate it; build an upright work force in both the public and private sectors of the economy; and contribute to the global war against financial crimes and terrorism financing; the adven

Since its inception, the EFCC has grabbed the bull by the horns, working tirelessly to execute its mandate. Under the current leadership, it zealously pursues its mandate of examining previously highlighted crimes; the Commission has made concerted attempts to identify, trace, and freeze, confiscate, or seize proceeds from such illegal operations.

Since its inception, the EFCC has also hosted the Nigerian Financial Intelligence Unit (NFIU), which is responsible for collecting suspicious transaction reports (STRs) from financial and designated non-financial institutions, analysing them, and disseminating them to all relevant government agencies and other FIUs around the world.

So far, the Commission has been able to and continues to achieve success in various areas of its mandate. Among other things, it has recorded multiple convictions for corruption, money laundering, oil pipeline sabotage, and other crimes.

Assets and money worth more than $11 billion have been recovered from corrupt politicians and their associates. The Commission is tenacious, with over 65 high-profile cases in advanced stages of prosecution in multiple Nigerian courts, as well as over 1500 other cases pending trial and over 600 convictions obtained.

Previously, there were more clauses of Financial Crimes Laws, such as:

– Money laundering amendment Acts 2003, No 7; 1995, No. – The Advance Fee Fraud and Other Related Offences Act 1995, as amended.

 The Banks Acts 1994, as modified, addresses failed banks, debt recovery, and financial malpractices.

 Banks and other financial institutions Act 1991, as amended.

 Miscellaneous Offences Act 1983.

 Any additional laws or regulations regarding economic and financial crimes, such as the Criminal Code and Penal Code.

The commission has also been designated as the Nigerian Financial Intelligence Unit. It is so, substantial that our problem is not the absence of law (Law) or the deficiencies in them but the total failure to enforce them have been the suffering of disaster

1.2 Statement of the Problem

A nation plagued by financial and economic crimes cannot achieve economic stability, prosperity, and development. According to Irving Kristol’s (2OO7), the problem is always considerably more essential than developing a solution, because he who can define the problem has always exercised a high degree of intellectual sovereignty over the range of viable answers that must be developed.

Nigeria, a country plagued by corruption, has been classified as corrupt both locally and internationally. Public officials accept large bribes, and the cost of public goods and services is inflated. The government frequently pays for non-existent goods and services.

Even when such corrupt acts are revealed, they are always played to the gallery and sacrificed on the altar of backroom deals. Fraud, embezzlement, falsification of financial information, obtaining by false pretence, and a lack of transparency and accountability are some of the corrupt behaviours that have characterised and painted the nation dark.

These iniquities have had a significant negative impact on our country’s economic stability, prosperity, and progress. Experience has proven that both the public and private sectors continue to suffer from inefficiency and ineptness, with growth indices and graphs trending lower.

This raises the important question of whether there are appropriate control measures and checks in place to stem the flood of corruption.

Nigeria’s low accomplishment in limiting and stamping out economic and financial crimes can be attributed to poor and disingenuous policy idea, formulation, and implementation.

Hence, the formation of the “Economic and financial crimes commission to enhance financial accountability and transparency in Nigeria.”

1.3 The Aims and Objectives of the Study

The primary goal of this research is to evaluate the EFCC’s contributions in promoting financial accountability and transparency in Nigeria. Objectives include:

1. Examine the EFCC’s responsibilities and functions.

2. Conduct a detailed examination of the EFCC’s contributions to detecting and managing fraud in Nigeria.

3. Investigate how the EFCC’s contributions have helped Nigeria’s public and commercial sectors since its creation.

4. Examine the EFCC’s contributions to improving financial accountability and transparency.

5. Conduct an effective examination of the commission’s efforts and triumphs.

1.4 RESEARCH QUESTIONS

1. What are the roles and functions of the EFCC?

2. How does the EFCC contribute to the detection and control of fraud in Nigeria?

3. How have EFCC contributions helped Nigeria’s public and private sectors?

4. How does the EFCC contribute to financial accountability and transparency?

5. What are the commission’s accomplishments and successes?

1.5 Research Hypothesis

The hypotheses for this study are also consistent with the aims and research questions.

1. EFCC has no responsibilities or functions assigned to her.

2. EFCC contributions cannot benefit the Nigerian public or private sectors.

3. There is no progress and successes on the side of the Commission.

4. The contributions of the EFCC cannot improve financial accountability and openness.

5. The EFCC as a machinery is unable of successfully detecting and controlling financial and economic irregularities in Nigeria.

1.6 SIGNIFICANCE OF THE STUDY.

The research study will be valuable and will also serve as a source of information for the following: • With this research, the government will be witty and aware of how the EFCC’s operations have helped to the administration and control of fraud in Nigeria. It will also be extremely useful in identifying areas of weakness and determining how to enhance them for successful fraud regulation.

• For academics, the research will aid in the development of new ideas and techniques to improve the EFCC’s effectiveness in enforcing financial accountability and transparency. It will also add to the enrichment of the literature on EFCC and act as a body of guarded knowledge that scholars can resort to.

• The public sector includes all government parastatals, organisations, ministries, and businesses. FIUs’ work will expose them to the EFCC’s activities.

• Private sector: This term refers to individuals and corporations that have contributed resources to deliver goods and services to the public for a profit. They carry out their varied activities while adhering to the laws and regulations that regulate their operations. They include single proprietorships, partnerships, and corporate entities, among others.

1.7 SCOPE AND LIMITATION OF THE STUDY.

The scope of this study attempts to take a comprehensive picture of EFCC activities in Nigeria and how they can help increase financial accountability and transparency. It covers their operations in both the public and private sectors, with the goal of increasing financial efficiency.

1.8 LIMITATIONS.

This study project would face numerous setbacks owing to a variety of reasons. One example is the inability to access information from the EFCC’s office. They are currently security conscious and unwilling to provide information, but they do intend to make available some write-ups and journals that would have been useful for this research.

Ideally, the investigation should have encompassed more states, but due to intrinsic constraints such as time and money, efforts will be made to touch on a large number of states in order to provide a balanced assessment of this research.

1.9 Definition of Terms.

• EFCC:

This is an acronym for the Economic and Financial Crimes Commission. It is a commission established by an Act of the National Assembly in 2002 and revised in 2004. It is in charge of investigating and enforcing all laws related to economic and financial crimes.

• Fraud:

The crime of misleading someone in order to illegally get money or things. It also refers to someone who appears to have qualities, abilities, and skills that he or she does not actually possess in order to deceive others.

• It is an acronym for Nigeria Financial Intelligence Unit. It is an autonomous central national agency based within the EFCC that receives and analyses financial data.

• Investigation:

This refers to a special type of examination of accounts or records conducted by an investigator with a predetermined goal based on the circumstances of the case (Chike Nwoha 2003:33).